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2013 (11) TMI 1284 - AT - Income TaxPeriod of Limitation - Whether the assessment order had been passed within the period of limitation – Held that:- As per the provisions of section 158BE, order u/s 158BC had to be passed within a period of two years from the end of the month in which the last of the authorization for search ended u/s 132 and for requisition u/s 132A - Relying upon C. Ramaiah Reddy Vs. ACIT [2010 (9) TMI 862 - Karnataka High Court] - The limitation for passing the assessment order comes to an end on 31.05.2002 by taking into consideration the last valid panchanama dated 4.5.2000 - The remaining two panchanams dated 30.06.2000 and 28.08.2000 are nothing but abuse of the process of law for enlarging the time of passing the order - A perusal of panchanama dated 30.06.2000 would show that search lasted for only one hour i.e. from 11.30 am to 12.30 pm and panchanama dated 28.08.2000 shows the duration of search as 55 minutes i.e. from 11.15 am to 12.10 pm. It can be safely concluded the last two panchanamas were mere formalities to keep the search proceedings alive - In the instant case, even if we enlarge the period as per the provisions of section 132(8A) authorization ended on 18.06.2000. Therefore, the period of limitation for passing assessment order ended on 30.06.2002, whereas the assessment order had been passed on 30.08.2002 i.e. beyond the period of limitation provided in the Act - Therefore, in our considered opinion, the assessment order was bad in law and was set aside being barred by limitation. Validity of Assessment Order u/s 158BC - No seizure of any incriminating documents/evidence - Held that:- No incriminating evidence or document had been recovered against the assessee during the search, the addition made against the assessee was unsustainable - The properties do not form investment or the properties of the assessee - They have to be assessed in the hands of the respective registered owners - It was also not the case of the Revenue that the owners of the said properties have denied ownership of the properties alleged to be registered in their respective names - The Revenue had also not stated that in the income returned, the assessee had not included the properties registered in his name – the notice issued to the assessee company under section 158BD suffers from limitation - the notice and the proceedings arising are bad in law thus set aside - Decided in favour of Assessee.
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